A $27 million project to add residential, commercial and civic space to downtown has been selected by the city to transform Monument Square into a magnet for residents and visitors.

The 50-plus apartments, restaurant, parking spaces, farmers market, grocery store — and possibly a new city hall — are intended to provide a constant flow of people into downtown.

"It fulfills the vision of being a destination place. It's going to be an attraction," Mayor Lou Rosamilia said.

Another major benefit for the city, he said, is that the project will put the property back on the tax rolls.

The joint venture of Kirchhoff-Consigli and Sequence Development, along with other partners, is the city's choice for developing two buildings on the prime 2.1-acre Hudson River site at 1 Monument Square, where City Hall stood for three decades before it was demolished.

"It's a good project for downtown," said Randy Collins of CSArch, a partner in the proposal.

The city's signature site hasn't been used for more than three years after city government moved out and the building was razed.

"It's a place to be," said Greg Burns, president of Kirchhoff-Consigli.

The two five-story buildings — tentatively identified as Monument North and Monument South — are designed to fit into the city's Victorian architecture and become part of downtown's fabric instead of overwhelming what is the city's historic public gathering spot at Monument Square.

"This project is intended to be integrated into our downtown," said Jeff Buell of Sequence Development.

The development of 1 Monument Square will occur in two phases and take three years to complete.

The timeline for the project calls for obtaining the necessary city and financial approvals before breaking ground in August.

The garage and substructure would be finished a year later in August 2015. Monument North would be completed in October 2015. Monument South and the plaza would be done in the fall of 2016.

The first phase has two components: the construction of a 175-space parking garage with access from River and Front streets, followed by the first of the two buildings.

Monument North will be 100,000 square feet, with the first floor's 20,000 square feet planned to be the year-round home of the Troy Riverfront Farmers Market and a grocery. There will be 50-plus market rate and luxury apartments on the upper floors.

"The apartments will feature amenities that are absolute musts — balconies that overlook the downtown and Hudson River, rooftop patios and gardens, a rooftop community kitchen that allows for barbecuing and socializing, and a host of finishes that marry new and old Troy," the partners' proposal says.

Monument South will be 50,000 to 100,000 square feet with a plaza. Its use will be determined by the city's decision of the future location of City Hall.

There will be a first-floor restaurant. The initial proposal is for a new city hall to be built above the restaurant.

If the city opts not to relocate, the building will be home to a mix of residential, commercial and retail space. The city would then receive $650,000 for the land.

A city committee will study whether to move City Hall back to 1 Monument Square in a new building or to remain in the leased offices in the Hedley Building at 433 River St., Rosamilia said.

City Hall in Monument South would be built under a lease-purchase agreement. The city's monthly expense would be similar to the $30,241 the city pays monthly to rent 36,435 square feet on the fifth floor of the former headquarters for Cluett, Peabody & Co.

The city can opt out of its rental agreement for the Hedley site every two years. It has a 10-year lease and is currently in the second year.

Rosamilia said the new Monument Square redevelopment project satisfies the city's concerns about the developer having the financial resources to undertake the construction. Kirchhoff-Consigli has provided written assurances that it has the funds available.

"We're an $800 million company. Troy has been a place we wanted to be for a number of years," Burns said. "We're ready to go,"

The two previous proposals selected for the Monument Square site foundered over funding issues.

In its 2011 submission, Troy City Center LLC, a partnership between Nigro Cos. and The Richman Group, envisioned a $31.5 million project with 106 units, of which 60 percent would have been government subsidized, with retail and commercial space. Judge Development Corp. had a $50 million proposal in 2013 that included 100 units with commercial and retail space.

Rosamilia said the only other proposal considered during this round from the partnership of Rensselaer Polytechnic Institute, Bonacio Construction and 3T Architects was good, but the Kirchoff-Consigli/Sequence plan stood out.